KATIE ALLEN:
Well, good morning. Welcome to the beautiful electorate of Higgins. I'm so delighted to welcome my good friend and colleague, the Treasurer of Australia, the Honourable Josh Frydenberg, here because we're here to talk about the Budget from last week, and what a great impact it's going to have for our locals here in the electorate but of course for Australians right across Australia. And I'm so delighted, we've been talking this morning with some of my local constituents, who have really backed in what's been happening in the last year with COVID and how the Government's responded, we've heard how they've enjoyed the support of JobKeeper. And today, we're so delighted to hear that they're really looking forward to the tax offset and how that's going to help. We heard from Amy this morning and from Darren, and that their lives will be helped by what the Government's doing, and Josh is doing a fantastic job. So it's great to be down here with Josh, talking to locals about the effects of the Budget and how it's going to help them so I'll introduce the Treasurer. Thank you very much.
JOSH FRYDENBERG:
Well thanks very much, Katie. Great to be here in Higgins following last week's Budget. It was great to meet, as you said this morning, Amy and Darren. Amy's a kindergarten teacher, Darren runs his own small business, both of whom are going to get a tax cut as a result of the announcements we made in Tuesday night's Budget. More than 10 million Australians are going to get a tax cut. And that is a very important policy that is going to help provide further economic stimulus across the economy. Last Tuesday's Budget was the Morrison Government's plan to secure Australia's economic recovery and to create more jobs. Australia as is ahead of the global pack, in terms of both the health and the economic response to COVID. We've been successful in suppressing the virus here in Australia. But at the same time, we've been the first of the major advanced economies to actually see our employment levels rise above where they were pre-pandemic and the unemployment rate has come down to 5.6 per cent, which is even lower than it was when we came to government even after the recession that we have just had. But we can't take our foot off the accelerator, we've got to continue to lock in those gains, otherwise it can be lost. So we've continued to do the things that have actually worked, providing more incentives for businesses to invest, and of course, providing Australians with more of their hard earned money with tax relief, including this Low and Middle Income Tax Offset. We’ve got record investment in skills, record investment in infrastructure, investments in the digital economy, as well. And as Coalition Governments, Liberal and National Governments always do, we guarantee the essential services Australians rely on. Whether it's the $17.7 billion extra for aged care, whether it's guaranteeing the National Disability Insurance Scheme will always be fully funded under the Coalition, or whether it's the new money going into mental health, as well as the new money going into women's safety initiatives. These are important initiatives in the Budget to guarantee the essential services that Australians need and rely on. But the key point is, we're still in the middle of the pandemic. We can't take the gains we've made for granted. We must lock them in. And last Tuesday night's Budget is all about securing Australia's economic recovery, getting more people into work. It was our economic plan, a plan that is already working. Are there any questions?
QUESTION:
You said that our stage three tax cuts for people earning six figure salaries is rewarding effort and rewarding aspiration, does that mean you think that people on lower salaries aren't aspirational?
JOSH FRYDENBERG:
People on all salaries are aspirational, people always want to keep more of their hard earned money. Let's go back to the last election because that's where we took to the Australian people our tax plan. And the Australian people had a very clear contrast. They had a choice between Labor's proposals to increase taxes by $387 billion high taxes on your super, high taxes on your income, higher taxes on your housing, higher taxes on your retirement savings. That’s what the Labor Party was proposing. In contrast, the Morrison Government was proposing lower taxes. We succeeded in legislating those lower taxes. In last year's Budget, we brought forward stage two by two years, and we continued an extra year of the Low and Middle Income Tax Offset. And stage three will take account and take effect from 2024-25. These are important reforms. We’re abolishing a whole tax bracket, the 37 cents in the dollar tax bracket. And we're creating one big tax bracket between $45,000 and $200,000. 95 per cent of Australians will pay a marginal rate of no more than 30 cents in the dollar. So if you're on $45,000, if you're an $80,000 if you’re on $100,000, you will pay lower taxes. And the Coalition fundamentally believes in rewarding effort, encouraging aspiration and returning more of Australians hard earned money to them. But one thing I'd say about the Labor Party when it comes to taxes, the only thing that you can be sure of with the Labor Party and taxes, is that they'll put them up. That's what they've done in the past. That's what they'll do again if they get the chance.
QUESTION:
You’d have to admit there's a massive disparity between someone on $45,000 and someone on $100,000. Shouldn't they be getting specialised taxes to people who are low income earners?
JOSH FRYDENBERG:
So if you are earning today $50,000 and if you are earning $200,000, the person on $200,000 is paying eight times as much tax as the person on $50,000, even though they're earning four times as much. We have maintained the progressive nature of our tax system with these reforms. The top one per cent of taxpayers will pay about 17 per cent of the overall tax burden. The top 5 per cent of taxpayers will pay about a third of the overall tax burden. And the top 20 per cent of taxpayers will pay about 60 per cent of the overall tax burden. So we’ve maintain the progressive nature. Now if Anthony Albanese wants to walk away from the legislated tax cuts, then that's a decision he must tell the Australian people and the sooner the better. Because if somebody is earning $80,000 today, they will be $900 worse off if Anthony Albanese abolishes stage three of the tax cuts if he got the chance. If someone is on $90,000 there'll be $1,120 worse off if the Labor Party abolishes stage three of our tax cuts. And if someone's earning $100,000 they’ll be $1,370 worse off as a result of the Labor Party abolishing stage three if that is what they decide to do.
QUESTION:
Treasurer, what is the plan for getting the Budget back into balance, will you cut spending?
JOSH FRYDENBERG:
Sorry it’s hard to hear. Sorry again?
QUESTION:
What is the plan for getting the Budget back into balance, will you cut spending after the next election?
JOSH FRYDENBERG:
Well, the key focus for us is to get Australians to the other side of this crisis. We can't be complacent. We have made significant gains, and we need to lock in those gains. That was the purpose behind extending the measures that have worked in recent Budgets, including the Low and Middle Income Tax Offset, like business investment in skills, like infrastructure spending, skills programs. Continuation of those programs is designed to lock in our recovery. But what I can say about our improved Budget position compared to the Budget that we announced just in last October is that net debt, compared to the size of the economy, which is a key indicator of financial stability comes down each and every year, and that the deficits come down by two thirds over the Forward Estimates. And there are nine countries around the world that have a AAA credit rating from the three leading credit rating agencies, among them Germany, the Netherlands, Switzerland, Luxembourg, Sweden, Denmark, and Norway, and Australia is consolidated its Budget faster than those other countries over the next six years. And that's really important to understand our focus is on getting Australians to the other side of this crisis, we have helped so far, save a generation of Australians from long term unemployment. That's been what has driven us through this crisis with the unprecedented economic support, which is more than double what the states and the territories have committed to combine. It's designed to get Australians to the other end of this crisis.
QUESTION:
Are you concerned Australia's closed border policies will turn us into a permanent outpost, like your colleague Tim Wilson has suggested?
JOSH FRYDENBERG:
Well, the Prime Minister was absolutely correct, to take the medical advice and to close our borders early on in the pandemic. He was criticised at the time for closing the borders with China and then subsequently with other countries, but is helped Australia successfully suppress the virus. So we will continue to take the medical advice with respect to the borders. We have an assumption in the Budget, it is not a policy decision, it's an assumption, that the borders will gradually open from the middle of next year. But the situation globally with respect to the virus is still very uncertain. There are more than 800,000 new cases a day. There are new variants of the virus, so we've got to take that medical advice. We've got to be cautious and when it is safe to do so we will open the borders.
QUESTION:
Just wondering Josh, is there a plan for living with the virus for when borders reopen? Your colleagues have warned that public tolerance with closed borders will wear thin as more Australians are vaccinated, do you share that concern?
JOSH FRYDENBERG:
Well we're unapologetic about putting the safety and the interests of Australians first. We must continue to take the medical advice. It has served Australia so well to date, and it will continue to serve us well into the future. Some people say Australia has managed to suppress the virus because we're an island but the United Kingdom's also an island, and look at the enormous pain they went through as a country with enormous loss of life. And the damage that was created to their economy and obviously, to the loss of life as well, because they didn't move to close the borders as quickly as we did. So we've moved quickly to close the borders, that kept Australians safe, we must continue to take the medical advice.
QUESTION:
So is the Government concerned that some of the people that were denied that flight back from India are now testing negative for the virus? And will they be given another opportunity to test again?
JOSH FRYDENBERG:
There are more flights that are going to be coming from India. Again, we're following the medical advice. And as you do when you're boarding planes to Australia, from other countries, you need to take those tests.
QUESTION:
And the PM promised to recognise West Jerusalem as Israel's capital. When's that going to happen? And what's your reaction to the international media building in Gaza being bombed?
JOSH FRYDENBERG:
Well, the situation obviously in the Middle East is of great concern. The loss of life on both sides is of great concern, as the Prime Minister said, Israel has a right to defend itself, but we are concerned by the escalation in the violence and that is something that I think both sides of politics share. Thank you.